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Title 7: SNAP Page 39 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Deductions Revised September 27, 2024 Child and Dependent Care When a household has a dependent care expense that could be either a medical deduction or a dependent care deduction, use it as a medical deduction. Child Support Payment Legal reference: 7 CFR 273.9(d)(5); Public Law 103-66 Allow a child support deduction when the support is legally obligated and is:  Paid by a household member for a child not part of the SNAP household, or  Paid by a household member to an agency or person outside of the household, even if the child or the other parent is in the same SNAP household as the person paying the support, provided the payments are not returned to the household or used for the needs of the child. When someone makes a child support payment for a child who is included in their own SNAP household, a deduction is only allowed if the payment is not returned to the household or used for the needs of the child. This is true regardless of whether the payee is also part of the SNAP household, because child support is considered income of the child. If the payment is for multiple children, but some are in the SNAP household, assume equal parts per child (unless otherwise specified) when determining the allowable deduction. When the payee is not part of the SNAP household, but the child is, you must determine what is being done with the payment, following policies for representative payee income. If the money is being given to the child, returned to the payor, or used for the child’s needs, the money is simply being transferred from one household member to another and should be treated as follows:  Do not allow a deduction, and  Do not count this as income to the child “Legally obligated” support includes cash payments, medical support, payments on arrearages, vendor payments, and repayments for FIP. The most recent court order will state exactly what kind of support is obligated to the child. The household must verify the legal obligation and how much is actually being paid. Do not allow a child support deduction for property settlement payments, alimony, voluntary child support, or income tax refund intercept. When the support is for legally obligated medical insurance, allow a deduction for premium payments. If a policy covers more people than the child for whom coverage is obligated, allow a deduction only for the child’s share of the cost by dividing the cost of the policy by the number of people covered.